McKesson Corporation (NYSE:MCK) Q3 2016 Earnings Conference Call - Final Transcript

Jan 27, 2016 • 05:00 pm ET


McKesson Corporation (NYSE:MCK) Q3 2016 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the McKesson Corporation Quarterly Earnings Call. All participants are in a listen-only mode. (Operator Instructions) Today's call is being recorded. If you have any objections, you may disconnect at this time.

I would now like to introduce Ms. Erin Lampert, SVP, IR.

Erin Lampert

Thank you, Mellissa. Good afternoon, and welcome to the McKesson Fiscal 2016 Third Quarter Earnings Call. I'm joined today by John Hammergren, McKesson's Chairman and CEO, and James Beer, McKesson's EVP and CFO. John will first provide a brief business update and will then introduce James who will review the financial results for the quarter. After James' comments, we will open the call for your questions.

Forward-Looking Cautionary Statements) Finally, please note that on today's call, we will refer to certain non-GAAP financial measures in which we exclude from our GAAP financial results the amortization of acquisition related intangible assets, acquisition expenses and related adjustments, and LIFO related adjustments. We also refer to certain non-GAAP measures calculated on a constant currency basis. We believe these non-GAAP measures will provide useful information for our investors. Please refer to our press release announcing third quarter fiscal 2016 results available on our website for a reconciliation of non-GAAP performance measures to the GAAP financial results. Additional information on constant currency effects is available in our SEC reports.

Thank you. And here's John Hammergren.

John Hammergren

Thanks, Erin, and thanks everyone for joining us on our call. As we've had an opportunity to speak with many of our investors since we last provided an update just a few weeks ago on January 11, I'll keep my remarks fairly brief this afternoon. In a moment, I'll turn the call over to James and he will walk you through our results for the third quarter. But before I do, I have three key messages I want to leave you with today.

First, there have been no changes to the fiscal 2016 outlook and preliminary fiscal 2017 outlook, which we provided on January 11. We continue to expect adjusted earnings per diluted share of $12.60 to $12.90 for fiscal 2016.

Second, our third quarter results were right in line with our revised expectations. I'm proud of the excellent progress we've made in expanding our global pharmaceutical sourcing scale delivering operating margin improvements in our Technology Solutions segment and successfully executing on the Celesio acquisition synergies.

And third, I have great confidence in our future. As we enter the final months of fiscal 2016 and look to the future, I am as confident as ever in our industry and the unique role we play in making the business of healthcare more efficient. I'm confident at McKesson, our focus on innovation in our customer first mindset has repelled us to be leaders in the markets we serve. And most important, I'm confident in the extraordinary team we have at McKesson were truly the best in the business.

Our businesses are very well positioned, both domestically and internationally and we have a tremendously strong balance sheet,